Michael Gove, the Secretary of State for Levelling Up, Housing and Communities has published a letter to building owners and managing agents setting out their responsibilities under the Building Safety Act.
Leaseholder protections under the Act came into force yesterday on 28 June 2022, at which point it became an offence to pass on costs for cladding and building remediation to leaseholders. The Act states that building owners must now draw on their own capital, the Building Safety Fund, or contributions from the industry levy to fix unsafe buildings which are 11 metres or taller.
In his letter Gove stated:
“It is important to be clear – from tomorrow, anyone who chooses to breach the statutory protections will be committing a criminal offence. Individuals involved in such criminal activity could face up to 10 years in prison, in addition to the consequences for their companies. Criminal exploitation of leaseholders will be treated as a matter of the utmost seriousness.”
Gove also expressed concern that some agents were still sending invoices to leaseholders and warned that the protections of the Act would apply retrospectively.
In cases where developers have not pledged to rectify property defects, building owners will be able to apply to the Building Safety Fund which is due to reopen or, alternatively, the medium-rise fund, which will be launched soon.
“Relevant authorities have the power to compel responsible entities to fund and undertake this work. I hope that it will not be necessary to do so, but I must be clear that if I am not satisfied, I will act to protect leaseholders,” Gove added.
Responding to measures that have now come in to force under the Building Safety Act Cllr Darren Rodwell, Local Government Association housing spokesperson, said:
“The LGA has long argued that blameless leaseholders should not have to pay for fire safety defects resulting from 20 years of regulatory failure and industry malpractice. We are pleased the Government has listened, although we remain concerned that the measures announced today will be insufficient to protect all leaseholders who own the freeholds of their blocks.
Government is right to recognise that the regulatory system was inadequate and operating poorly before the Grenfell Tower fire. It now needs to take responsibility for that failure by ensuring social housing tenants have the same protection that it has offered homeowners.
If councils and housing associations are not protected from the cost of fixing dangerous cladding and other fire safety defects those costs will inevitably fall on rent-payers. The Government must also exempt social housing from the forthcoming levy.”
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